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The Importance of a Liability Waiver

When it comes to the legal arena of liability, defamation, slander, negligence, torts, compensation and claims, it's easy to get lost in the jargon. Put simply, liability is a kind of legal responsibility. If a given person or organisation is financially and legally responsible for another person or organisation, they are liable for any injury sustained by that person or organisation, unless otherwise defined in a liability waiver. Injury has a wide reaching definition and can include damage to property and/or possessions, bodily harm, and somewhat less tangible forms of injury such as defamation and emotional damage.

Liability Waiver

There are several key reasons why it's important for you to understand the ins and outs of the liability waiver, whether you are the organisation or individual seeking your customers to agree to your terms or if you are the client who is being asked to sign. Liability forms are NOT formalities. They are important legal documents that should be treated with the same scrutiny as a loan agreement. If you need a liability waiver form drawn up, have it done by a firm with experience - this could save you literally thousands and thousands of dollars down the road. If you are signing a release of liability, read the fine print! Ask for clarification on any ambiguous phrases or roundabout sentences. Both parties should have a clear understanding of what each are responsible for.

Why?

Two parties entering into a business agreement or a tourist booking an adventure weekend are two examples of situations when a liability waiver would be important. It is to protect the interests of both parties: The person providing a service is committing to providing the service of a certain standard which will not result in any unexpected injury or harm. They are promising to take all reasonable care that no-one or thing suffers damage. The person engaging their services is recognising that unexpected circumstances may arise and that they will not hold the first party responsible in the event of these circumstances resulting in damage, or even death. If something unfortunate does happen and the second party can prove the first party was negligent and did not provide their service at a safe standard which was promised, there are grounds for a liability case.

Commercial General Liability Insurance

This is a wide ranging insurance businesses take out as a very general cover. It protects businesses against claims made in relation to bodily injury, property damage, personal injury (which incorporates slander or libel) and advertising injury. Commercial general liability insurance will also usually incorporate legal costs of defending or settling claims. The benefit to your business with good insurance is that even if you negligent or liable for damage, injury, or loss to a second party's property, reputation or health, you business will still be able to function. Of course, no kind of insurance can protect a business' reputation so it's best to do your utmost to provide services to a high standard.

The Paperwork

Release of liability is something to be taken seriously and it's worth noting that not everyone has the same moral standards. Whether you are the first or second party, keeping records, both hard and electronic, of the documents you sign is vital insurance against insurance fraud. With the range of technology available today, it is not unheard of for people to tamper with documents after they have been signed. Ensure that each page is initialled and if possible, sign enough documents so that each party can keep a copy with original signatures. Keep them somewhere safe and consider making electronic copies as backups, if you're prone to loosing papers. It's interesting to note that not all liability waivers are legal documents that need to be signed. Often by purchasing a ticket to a music event, for example, you are accepting the terms and conditions of the organiser, which will more often than not include you waiving liability.

The Details

Liability waivers will invariably be discussed when two parties enter into an agreement for one to provide the other a service, such as a construction company on a building site. It's all about setting the terms for a working relationship. If you're the one signing the waiver you'll probably agree to accept full responsibility for any "risks or loss, property damage or personal injury, including death, which may be sustained by me. I also accept full responsibility for any loss or damage to the property I own which occurs as a result of participation/engagement in this tour/sport/contract/event/etc". Forms will usually also umbrella over a company's employers, and protect the party against legal action. You might notice that the word voluntary is repeated quite a few times throughout a liability waiver form; this is because the signature must not be obtained when the signer is under duress - if the terms of signing were unfair the waiver may be proven to be null and void at a later date.